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In March 2005, Titan issued US$400 million (HK$ 3.12 billion) of fixed rate guaranteed senior notes (the "Notes") to fund expansion. The Notes have a term of seven years and are due in March 2012. Roadshows were held in Hong Kong, Singapore, London and several US cities. Subscriptions totalled over US$2 billion, making the offer more than five times oversubscribed. The Notes bearing interest at the rate of 8.5% per annum, payable semi-annually in arrears in March and September each year, commencing in September 2005. The Notes have a rating of C by Standard & Poor's ("S&P") and C by Moody's and are listed on the Singapore Stock Exchange. Morgan Stanley acted as lead manager and sole bookrunner, while Credit Suisse First Boston was co-manager.
The Group repurchased and cancelled the senior notes with a principal amount of US$66.82 million (HK$521 million) in 2008. In the first quarter of 2009, the Group continued to reduce its debt level by further repurchasing senior notes with a principal amount of US$17.82 million (HK$139 million). The outstanding principal amount of the senior notes following such cancellations has been reduced from US$400 million (3,120 million) to US$315 million (HK$2,460 million).
Titan announced in December 2009 that the Company is commencing an exchange offer and consent solicitation for the 2012 Notes. (See here for details)
Titan's corporate credit rating with S&P is CC and Caa3 by Moody's.
At 30 June 2009, the Group had total assets of HK$9,194 million (31 December 2008: HK$8,999 million), total bank loans of HK$2,412 million (31 December 2008: HK$1,781 million), no finance lease payables (31 December 2008: HK$1 million), the Notes of HK$2,487 million (31 December 2008: HK$2,622 million), the convertible, preferred shares-liability portion of HK$609 million (31 December 2008: HK$573 million) and the Notes payable of HK$201 million (31 December 2008: HK$198 million). The gearing of the Group, calculated as the total bank loans, finance lease payables, the Notes and Notes payable to total assets, was 0.55 at 30 June, 2009 (31 December 2008: 0.51). |
